Every state in the nation has a different requirement on which businesses must be bonded. The state of Maryland has their own set of laws to protect consumers against unfair business practices by requiring a Maryland surety bond for businesses that enter into contracts with their customers. Surety bonds work similar in every state. When two parties enter into a contract, a surety is used to guarantee that services will be fully completed and all of the stipulations of the principal will be met. In a surety contract, the principal, otherwise known as the business purchasing the Maryland surety bond, is the only party that is required to fulfill the promises made. The obligee, the individual the services are being provided to, must not meet any requirements. The purpose of the surety bond is providing the obligee with assurance that the said duty will be performed in its entirety.
In addition to these contractors type of bonds, there are also bonds required by the state government in order to receive professional licensing. In order to meet the states licensing requirements the applicant may be required to secure a specific type of Maryland surety bond. When you are in the process of obtaining any type of license, whether it be an insurance agents license or a real estate agents license, it is important to contact local and state offices to verify whether or not you are required to obtain a surety bond. Failure to meet requirements could lead to serious penalties or a denial of your application for licensing.
While many only secure surety bonds because it is required by law, there are a number of business owners who are electing to carry a surety bond pertaining to the industry they serve for extra protection. Extra protection provided by an elected security bond includes employee actions and theft from an employee. While these are not things you can avoid, they are exposures you can protect your and your business against. Customers tend to feel more at ease when hiring a company with a surety bond, as they know your business is backed by surety bond protection and they will be covered in the event you do not meet the contract obligations. While no company plans to fall short of the customer's expectations, those who take proactive steps to cover themselves against this are more desirable.
If you are required by the state government to obtain a bond, or you are choosing to do so for extra protection, applying for them is very simple. Browse through surety bond agents online and narrow your search by choosing experienced agents in your area with positive customer feedback. Because the application takes only minutes, and premiums are extremely competitive, there is no reason not to secure one if needed.